Wedbush Securities, Inc. (CRD # 877) is a financial services and investment firm based out of Los Angeles, California. Wedbush currently has three pending regulatory actions against the firm.
One such action was initiated by the Securities & Exchange Commission in March 2018. The SEC alleges that Wedbush failed to reasonably supervise one of its registered representatives who engaged in manipulative trading for several years. The SEC also alleges that the firm learned of the representative’s activity, but did not have the systems in place to properly investigate it. Specifically, the firm received an email detailing the representative’s role in the fraudulent activity and was aware of multiple customer complaints brought against her, among other red flags alerting Wedbush to her conduct.
The New York Stock Exchange also has a pending action against Wedbush initiated in 2017. The NYSE claims that Wedbush failed to supervise the trading activities of its president. FINRA rules require member firms to create and maintain a system “that is reasonably designed to achieve compliance with applicable securities laws and regulations.” FINRA also requires that its members refrain from engaging in fraudulent or deceptive practices with their customers.
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